RETAIL OPPORTUNITY INVESTMEN (ROIC) Stock Fundamental Analysis
NASDAQ:ROIC - US76131N1019 - REIT
17.49 USD
0 (0%)
17.49 USD
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ROIC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. While ROIC has a great profitability rating, there are quite some concerns on its financial health. ROIC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ROIC was profitable.
In the past year ROIC had a positive cash flow from operations.
Each year in the past 5 years ROIC has been profitable.
In the past 5 years ROIC always reported a positive cash flow from operatings.
1.2 Ratios
ROIC has a better Return On Assets (1.92%) than 69.84% of its industry peers.
With a decent Return On Equity value of 4.47%, ROIC is doing good in the industry, outperforming 68.25% of the companies in the same industry.
The Return On Invested Capital of ROIC (3.10%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ROIC is in line with the industry average of 3.04%.
The 3 year average ROIC (2.80%) for ROIC is below the current ROIC(3.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.47% | ||
| ROIC | 3.1% |
ROA(3y)1.56%
ROA(5y)1.49%
ROE(3y)3.6%
ROE(5y)3.51%
ROIC(3y)2.8%
ROIC(5y)2.77%
1.3 Margins
ROIC has a Profit Margin of 17.24%. This is in the better half of the industry: ROIC outperforms 72.22% of its industry peers.
ROIC's Profit Margin has declined in the last couple of years.
The Operating Margin of ROIC (34.07%) is better than 71.43% of its industry peers.
In the last couple of years the Operating Margin of ROIC has remained more or less at the same level.
With an excellent Gross Margin value of 82.88%, ROIC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of ROIC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.07% | ||
| PM (TTM) | 17.24% | ||
| GM | 82.88% |
OM growth 3Y0.29%
OM growth 5Y-0.84%
PM growth 3Y-2.53%
PM growth 5Y-6.17%
GM growth 3Y-0.94%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROIC is destroying value.
The number of shares outstanding for ROIC has been increased compared to 1 year ago.
ROIC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ROIC has an improved debt to assets ratio.
2.2 Solvency
ROIC has an Altman-Z score of 0.86. This is a bad value and indicates that ROIC is not financially healthy and even has some risk of bankruptcy.
ROIC's Altman-Z score of 0.86 is fine compared to the rest of the industry. ROIC outperforms 65.87% of its industry peers.
ROIC has a debt to FCF ratio of 565.81. This is a negative value and a sign of low solvency as ROIC would need 565.81 years to pay back of all of its debts.
ROIC has a Debt to FCF ratio of 565.81. This is comparable to the rest of the industry: ROIC outperforms 46.03% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that ROIC has dependencies on debt financing.
ROIC has a Debt to Equity ratio (1.09) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 565.81 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.44
WACC7.02%
2.3 Liquidity
ROIC has a Current Ratio of 1.41. This is a normal value and indicates that ROIC is financially healthy and should not expect problems in meeting its short term obligations.
ROIC's Current ratio of 1.41 is in line compared to the rest of the industry. ROIC outperforms 59.52% of its industry peers.
ROIC has a Quick Ratio of 1.41. This is a normal value and indicates that ROIC is financially healthy and should not expect problems in meeting its short term obligations.
ROIC has a Quick ratio of 1.41. This is in the better half of the industry: ROIC outperforms 62.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
ROIC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.79%.
ROIC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.73% yearly.
The Revenue has been growing slightly by 4.18% in the past year.
The Revenue has been growing slightly by 2.07% on average over the past years.
EPS 1Y (TTM)-13.79%
EPS 3Y-1.2%
EPS 5Y-2.73%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y4.88%
Revenue growth 5Y2.07%
Sales Q2Q%2.13%
3.2 Future
ROIC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.99% yearly.
Based on estimates for the next years, ROIC will show a small growth in Revenue. The Revenue will grow by 1.84% on average per year.
EPS Next Y73.78%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
EPS Next 5Y7.99%
Revenue Next Year4.36%
Revenue Next 2Y2.65%
Revenue Next 3Y2.38%
Revenue Next 5Y1.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 69.96, which means the current valuation is very expensive for ROIC.
ROIC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.84, ROIC is valued quite expensively.
The Price/Forward Earnings ratio is 60.17, which means the current valuation is very expensive for ROIC.
ROIC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ROIC to the average of the S&P500 Index (22.48), we can say ROIC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.96 | ||
| Fwd PE | 60.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROIC is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
ROIC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 894.73 | ||
| EV/EBITDA | 16.29 |
4.3 Compensation for Growth
ROIC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ROIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y3.76%
EPS Next 3Y6.53%
5. Dividend
5.1 Amount
ROIC has a Yearly Dividend Yield of 3.43%.
Compared to an average industry Dividend Yield of 6.14, ROIC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.32, ROIC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
The dividend of ROIC decreases each year by -10.38%.
ROIC has paid a dividend for at least 10 years, which is a reliable track record.
ROIC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.38%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
131.94% of the earnings are spent on dividend by ROIC. This is not a sustainable payout ratio.
DP131.94%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
17.49
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.95%
Inst Owner Change-27.68%
Ins OwnersN/A
Ins Owner Change0%
Market Cap2.24B
Analysts50.91
Price Target16.7 (-4.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend0.45
Dividend Growth(5Y)-10.38%
DP131.94%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.39%
Min EPS beat(2)-39.67%
Max EPS beat(2)-7.12%
EPS beat(4)1
Avg EPS beat(4)-5.39%
Min EPS beat(4)-39.67%
Max EPS beat(4)32.35%
EPS beat(8)2
Avg EPS beat(8)-6.5%
EPS beat(12)5
Avg EPS beat(12)4.15%
EPS beat(16)9
Avg EPS beat(16)31.8%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)1.72%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)6.93%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)6
Avg Revenue beat(12)0.65%
Revenue beat(16)8
Avg Revenue beat(16)0.7%
PT rev (1m)0%
PT rev (3m)-1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)31.43%
EPS NY rev (3m)21.05%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.96 | ||
| Fwd PE | 60.17 | ||
| P/S | 6.64 | ||
| P/FCF | 894.73 | ||
| P/OCF | 15.43 | ||
| P/B | 1.72 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)0.25
EY1.43%
EPS(NY)0.29
Fwd EY1.66%
FCF(TTM)0.02
FCFY0.11%
OCF(TTM)1.13
OCFY6.48%
SpS2.64
BVpS10.15
TBVpS9.82
PEG (NY)0.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.47% | ||
| ROCE | 3.92% | ||
| ROIC | 3.1% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 3.21% | ||
| OM | 34.07% | ||
| PM (TTM) | 17.24% | ||
| GM | 82.88% | ||
| FCFM | 0.74% |
ROA(3y)1.56%
ROA(5y)1.49%
ROE(3y)3.6%
ROE(5y)3.51%
ROIC(3y)2.8%
ROIC(5y)2.77%
ROICexc(3y)2.81%
ROICexc(5y)2.78%
ROICexgc(3y)2.86%
ROICexgc(5y)2.83%
ROCE(3y)3.55%
ROCE(5y)3.51%
ROICexcg growth 3Y4.14%
ROICexcg growth 5Y1.52%
ROICexc growth 3Y4.44%
ROICexc growth 5Y1.76%
OM growth 3Y0.29%
OM growth 5Y-0.84%
PM growth 3Y-2.53%
PM growth 5Y-6.17%
GM growth 3Y-0.94%
GM growth 5Y-0.47%
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 565.81 | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 135% | ||
| Cap/Sales | 42.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.79% | ||
| Profit Quality | 4.3% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 0.86 |
F-Score6
WACC7.02%
ROIC/WACC0.44
Cap/Depr(3y)145.7%
Cap/Depr(5y)104.48%
Cap/Sales(3y)46.5%
Cap/Sales(5y)33.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.79%
EPS 3Y-1.2%
EPS 5Y-2.73%
EPS Q2Q%-42.86%
EPS Next Y73.78%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
EPS Next 5Y7.99%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y4.88%
Revenue growth 5Y2.07%
Sales Q2Q%2.13%
Revenue Next Year4.36%
Revenue Next 2Y2.65%
Revenue Next 3Y2.38%
Revenue Next 5Y1.84%
EBIT growth 1Y6.57%
EBIT growth 3Y5.18%
EBIT growth 5Y1.22%
EBIT Next Year98.32%
EBIT Next 3Y27.23%
EBIT Next 5Y20.38%
FCF growth 1Y102.09%
FCF growth 3Y2.72%
FCF growth 5Y9.65%
OCF growth 1Y-6%
OCF growth 3Y11.39%
OCF growth 5Y2.41%